Is there space for AI in financial planning?

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As a business professional, you may have heard the insightful quote from entrepreneur and investor Naval Ravikant, who said, “if the work doesn’t require creativity, delegate it, automate it, or leave it.” In today’s world, we are fortunate to have access to a plethora of industry-specific technologies and tools that aid in our organization, productivity, knowledge, and efficiency.

While most of us have welcomed technology into our lives to manage and automate our workloads so we can focus on creativity, many of us have been hesitant to adopt artificial intelligence (AI). We’ve always viewed technology as an assistant that we can direct to produce the desired outcomes. However, AI feels different, and its potential for limitless capabilities can be daunting.

Recently, there has been a lot of talk about ChatGPT and its ability to replicate financial advice with a high degree of accuracy. This may feel threatening to those who provide financial planning advice to clients. However, when we asked ChatGPT what role it can play in financial planning, it advocated strongly for itself as a tool that can assist you in reallocating your time and resources towards more strategic and value-added activities. Below is our exchange with ChatGPT.

“What are some ways I can use ChatGPT in financial planning?”

ChatGPT can be a valuable tool for financial planning by providing personalized recommendations and advice to customers. Here are some ways you can use ChatGPT in financial planning:

Investment recommendations: ChatGPT can analyze a customer’s financial situation, risk tolerance, and investment goals to provide personalized investment recommendations. It can also monitor the customer’s investments and provide updates on performance and potential opportunities.

Retirement planning: ChatGPT can help customers plan for retirement by analyzing their current financial situation, projected retirement needs, and expected income sources. It can provide personalized recommendations on savings goals, investment strategies, and retirement income planning.

Budgeting: ChatGPT can help customers create and maintain a budget by analyzing their income and expenses, providing recommendations on spending categories, and sending reminders to stay on track.

Debt management: ChatGPT can provide advice on managing debt, including strategies for paying off debt and refinancing

Tax planning: ChatGPT can provide guidance on tax planning strategies, such as maximizing retirement contributions, taking advantage
of tax deductions, and using tax-efficient investment vehicles.

Education planning: ChatGPT can help customers plan for education expenses, such as college tuition and expenses, by providing
personalized savings recommendations and investment strategies.

Estate planning: ChatGPT can help customers plan for the transfer of assets to heirs by providing personalized estate planning
advice and recommendations.

Risk assessment: ChatGPT can help automate the risk assessment process by analyzing customer data and providing recommendations based on their risk tolerance and investment goals.

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It is indisputable that ChatGPT could accomplish these tasks, but it may take some time for advice professionals to feel secure in its accuracy. If you are interested in exploring AI but are not yet ready to entrust it with writing your SOAs, there are some practical applications that can help you ease into this unfamiliar territory:

Customer support: AI can be integrated into your company’s website or messaging platforms to provide 24/7 customer support. It can answer common questions, provide product information, and even handle basic support requests. This can help free up your team’s time to focus on more complex issues.

Sales and marketing: AI can assist with sales and marketing operations by providing personalized recommendations and promotions to customers. It can also help identify potential leads and guide them through the sales funnel.

Data analysis: analyze large amounts of data, such as customer feedback and social media trends, to identify areas where your business can improve. This can help you make data-driven decisions that can increase your revenue and customer satisfaction.

Employee training: use it to create interactive training modules for employees. It can provide instant feedback and help employees learn at their own pace.

The adoption of new technology or concepts has always been a divisive topic. Some individuals embrace it wholeheartedly, others exercise caution, and some reject it outright. As with all technology, there is no single solution that suits everyone, and AI will be no exception. At Scale Up Paraplanning, we firmly believe that there is significant potential for AI in our industry, and we are committed to exploring ways in which we can leverage it to provide innovative solutions to our clients.

We’d love your feedback on AI and its presence in the financial planning industry. Do you love it? Hate it? Already use it? Let us know.

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